Chapter Three Identifying Stakeholders and Issues
Canadian Business and Society: Canadian Business and Society: Ethics & Responsibilities Ethics & Responsibilities Chapter Three Identifying Stakeholders and Issues
Chapter Outline
Stakeholder: Definition
Identifying Stakeholders
Managers’ Responsibilities
Opposition to Stakeholder Concept
Argument for Stakeholder Concept
Issues Management
Issues Management Process
Stakeholder: Defnition
An individual, or group, who can influence and/or is influenced by the achievement of an organization’s purpose.
Source: Freeman, 1984
Why are stakeholders important to a firm?
What can happen to the firm if managers do not properly identify and satisfy the interests of their firm’s stakeholders?
Do stakeholders have differing goals and power/influence over time?
Chapter 3 Discussion Questions
Identifying Stakeholders
Owners
Directors
Employees
Customers or consumers
Lenders and creditors
Suppliers
Identifying Stakeholders
Service professionals
Dealers, distributors, and franchisees
Business organizations
Competitors
Joint-venture participants
Non-governmental organizations
Society at large
Educational institutions
Religious groups
Charities
Service, fraternal, cultural, and ethnic associations
The media
Government
Chapter 3 Identifying Stakeholders
Identify stakeholders
Understand how corporation currently views stakeholders
Examine how each stakeholder will or might influence firm
Assess opportunities and threats
Rank stakeholders by influence
Prepare programs or policies detailing how to cope with stakeholders
Chapter 3 Managers’ Responsibilities
Problems of categorization (e.g., how to identify and prioritize stakeholders)
Challenges in meeting expectations (e.g., tradeoffs among the stakeholders)
Dilution of top management focus (e.g., away from financial performance)
Impracticality of shared governance (e.g., focus still on shareholders)
Chapter 3 Opposition to Stakeholder Concept
Simply good business
Ignoring stakeholder interests can have substantial economic consequences (e.g., employees, customers, lenders, etc.)
Provides more systematic approach to recognizing stakeholder expectations and deciding how to respond
Chapter 3 Argument for Stakeholder Concept
Issues Management: Defnition
A systemic process by which the
corporation can identify, evaluate, and
respond to those economic, social, andenvironmental issues that may impact
significantly upon it. Issues Life Cycle Stages:
Degree of awareness of issue over time (none or little; increasing; prominent; peak; declining)
Chapter 3 Issues Management
Issues Management Process 1.
Identification of issues 2. Analysis of issues 3. Ranking or prioritizing of issues 4. Formulating issue response 5. Implementing issue response 6. Monitoring and evaluating issue response
Sources: Carroll, 1989; Bryson, 1988
Group Exercise you all belong to – like a university - or you all know well (an organisation that In a group – identify one organisation the company. Questions:\ airline) – discuss the stakeholders of that you use – like a beer company, an 2.
1. stakeholders? How does the organisation manage its How many stakeholders does it have? 3. stakeholders? organisation better at managing its What do you think would make the 5. What are the opportunities or threats 4. influence? Can you rank stakeholders by stakeholders? posed by the most influential